News:
The latest inflation numbers dropped yesterday pre-market.
The Fed-preferred gauge, the PCE index, showed spending ticked upward from June to July.
But the rise is insignificant when you look at the 12-month chart.
Inflation is still on the cooling path. Yesterday’s data didn’t suggest otherwise.
- Month-over-month personal income rose +0.2%
- Disposable income fell -0.2%
Markets took the news in stride.
The indexes opened higher but faded into the close. Markets closed Thursday at the session lows and mostly red…
- Dow Jones -0.5%
- Nasdaq +0.1%
- S&P 500 -0.2%
- Russell 2000 -0.2%
Sector Round Up
Risk-on stocks led as only 4 of the 11 sectors closed Thursday’s session with gains.
At the top…
- Technology (XLK) +0.5%
- Consumer Discretionary (XLY) +0.3%
- Communications (XLC) +0.1%
At the bottom…
- Real Estate (XLRE) -0.7%
- Utilities (XLU) -1.0%
- Healthcare (XLV) -1.2%
Technicals:
The Russell 2000, which represents risk-on stocks, is a critical turning point…
The long-term resistance level, marked on the chart above, should slow buyers down.
We’re expecting a drawdown in the coming month. Markets may have reached a turning point.
Your latest readout…
- The VIX is near 3-year lows
- RSI levels are all neutral
- The put-to-call ratio is neutral
Timing:
Today is the first day of September and the last day of trading before the 3-day weekend.
The markets will digest the latest jobs data, which drops at 8:30 this morning.
Watchlist:
*Low Float
^Open Position
*HOLO support at $8
*TSAT support at $18
GRPN support at $12
CAL support at $28
PFIE support at $2.60
REKR support at $3.50, resistance at $4
ESTE support at $20
MAPS support at $1.40 / $1.50
TIGR support at $4.50
Secondary watchlist—float 100+ million
TSHA support at $2.75
ICCT on watch